You might be interested in calculating the value of ₹1 for the year 1993. Or calculate the value of ₹1 for the year 1998
.₹1 in 1988 is worth ₹13.03 today.
The value of ₹1 from 1988 to 2022
₹1 in 1988 has the purchasing power of about ₹13.03 today, a ₹12.03 increase in 34 years. Between 1988 and today, the rupee experienced an average annual inflation rate of 7.84%, resulting in a cumulative price increase of 1203.32%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1988.
In 1988, the inflation rate was 9.3835%. Inflation is now 6.08% higher than it was last year. If this figure holds true, ₹1 today will be worth ₹7.08 next year in purchasing power.
Inflation from 1988 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 1988 to today) | 1203.32% |
| Average inflation rate (from 1988 to today) | 7.84% |
| Converted amount | ₹13.03 |
| Price Difference | ₹12.03 |
| CPI in 1988 | 709.6 |
| CPI in 2022 | 9248.3472 |
| Inflation in 1988 | 9.3835% |
| Inflation in 2022 | 6.08% |
| ₹1 in 1988 | ₹13.03 in 2022 |
Buying power of ₹1 in 1988
If you had ₹1 in your hand in 1988, its adjusted value for inflation today would be ₹13.03. Put another way, you would need ₹13.03 to beat the rising inflation. When ₹1 becomes equivalent to ₹13.03 over time, the "real value" of a single Indian rupee decreases. In other words, a rupee will pay for fewer items at the store.
This effect explains how inflation gradually erodes the value of a rupee. By calculating the value in 1988 rupees, it's evident how ₹1 loses its worth over 34 years.
Rupee inflation for ₹1 from 1988 to 2022
The below tabular column shows the effect of inflation on ₹1 in the year 1988 to the year 1988.
| Year | Rupee Value | Inflation Rate |
|---|---|---|
| 1988 | 1 | 9.3835% |
| 1989 | 1.07 | 7.07% |
| 1990 | 1.17 | 8.97% |
| 1991 | 1.33 | 13.87% |
| 1992 | 1.49 | 11.79% |
| 1993 | 1.58 | 6.33% |
| 1994 | 1.74 | 10.25% |
| 1995 | 1.92 | 10.22% |
| 1996 | 2.09 | 8.9772% |
| 1997 | 2.24 | 7.1643% |
| 1998 | 2.54 | 13.2308% |
| 1999 | 2.66 | 4.6698% |
| 2000 | 2.76 | 4.0094% |
| 2001 | 2.87 | 3.77% |
| 2002 | 2.99 | 4.30% |
| 2003 | 3.1 | 3.81% |
| 2004 | 3.22 | 3.7673% |
| 2005 | 3.36 | 4.2463% |
| 2006 | 3.55 | 5.7965% |
| 2007 | 3.78 | 6.3729% |
| 2008 | 4.09 | 8.3493% |
| 2009 | 4.54 | -0.36% |
| 2010 | 5.08 | 1.64% |
| 2011 | 5.54 | 8.91% |
| 2012 | 6.06 | 9.47% |
| 2013 | 6.67 | 10.01% |
| 2014 | 7.11 | 6.66% |
| 2015 | 7.46 | 4.907% |
| 2016 | 7.83 | 4.95% |
| 2017 | 8.09 | 3.33% |
| 2018 | 8.41 | 3.94% |
| 2019 | 8.73 | 3.73% |
| 2020 | 9.3 | 6.62% |
| 2021 | 9.78 | 5.13% |
| 2022 | 10.38 | 6.08% |
Conversion of 1988 rupees to today's price
Based on the 1203.32% change in prices, the following 1988 amounts are shown in today's rupees:
| Initial value | Today value |
|---|---|
| ₹1 rupee in 1988 | ₹13.03 rupees today |
| ₹5 rupees in 1988 | ₹65.17 rupees today |
| ₹10 rupees in 1988 | ₹130.33 rupees today |
| ₹50 rupees in 1988 | ₹651.66 rupees today |
| ₹100 rupees in 1988 | ₹1303.32 rupees today |
| ₹500 rupees in 1988 | ₹6516.59 rupees today |
| ₹1,000 rupees in 1988 | ₹13033.18 rupees today |
| ₹5,000 rupees in 1988 | ₹65165.92 rupees today |
| ₹10,000 rupees in 1988 | ₹130331.84 rupees today |
| ₹50,000 rupees in 1988 | ₹651659.19 rupees today |
| ₹100,000 rupees in 1988 | ₹1303318.38 rupees today |
| ₹500,000 rupees in 1988 | ₹6516591.88 rupees today |
| ₹1,000,000 rupees in 1988 | ₹13033183.77 rupees today |
How to calculate the inflated value of ₹1 in 1988
To calculate the change in value between 1988 and today, we use the following inflation rate formula:
CPI Today / CPI in 1988 x Rupee Value in 1988 = Current Rupee Value
By plugging the values into the formula above, we get:
9248.3472/ 709.6 x ₹1 = ₹13.03
To buy the same product that you could buy for ₹1 in 1988, you would need ₹13.03 in 2022.
To calculate the cumulative or total inflation rate in the past 34 years between 1988 and 2022, we use the following formula:
CPI in 2022 - CPI in 1988 / CPI in 1988 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 9248.3472 - 709.6 / 709.6) x 100 = 1203.32%
Alternate method to calculate today's value of money after inflation - Using compound interest formula
Given that money changes over time due to inflation, which acts as compound interest, we can use the following formula:
FV = PV (1+i/100)^n
where,
- FV = Future value
- PV = Present value
- i: Average interest rate (inflation)
- n: Number of times the interest is compounded (i.e. # of years)
The future value in this case represents the amount obtained after applying the inflation rate to our initial value. In other words, it indicates how much ₹1 is worth today. We have 34 years between 2022 and 1988. The average inflation rate was 7.8439045843518%.
Plugging in the values into the formula, we get:
1 (1+ % 7.84/ 100 ) ^ 34 = ₹13.03